Estate tax and distribution, general legacies. The estate of Marlene Johnson consists of assets having a fair value of $308,785. As of the date of her death, the following claims exist against the estate:
|
Claims Existing at Date of Death |
Amount of Claim |
|
Mortgage balance including principal and accrued interest due on |
|
|
personal residence with a fair value of $180,000 |
$142,580 |
|
Funeral expenses |
6,300 |
|
Expenses incurred by executor of estate for administration purposes |
2,100 |
|
Income and estate taxes |
12,400 |
|
Brokerage commissions associated with the sale of the personal residence |
16,000 |
|
A lien against the personal residence for unpaid real estate taxes |
4,200 |
|
Unreimbursed medical claims for the last three months prior to death |
27,000 |
|
Unpaid balance of personal loan received from her brother |
14,700 |
|
Unpaid balance of automobile repair expenses A mechanic’s lien has |
|
|
been placed on the automobile which has a fair value of $5,000 |
750 |
|
Unpaid balance of other personal expenses |
3,950 |
|
Total of all claims |
$229,980 |
Legacies addressed in the decedent’s will include the following:
1. $30,000 from the sale of the personal residence, after payment of mortgages, real estate taxes, and sales costs, will be paid to the decedent’s nephew.
2. The collection of Edward S. Curtis photographs, valued at $22,000, to be given to the decedent’s nephew.
3. Cash of $40,000 to be divided equally among the decedent’s two sisters.
Prepare a schedule, in order of priority, indicating how the assets of the estate will be disbursed.